Why should Contracts for Difference matter to UK businesses?
Understanding Contracts for Difference (CfD) is becoming increasingly important for businesses as...
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Whatever your customers' compliance obligations, our energy experts are here to provide support. And our services don’t stop at inspections and audits, we can also implement identified improvements.
Understanding and fulfilling your customers’ energy reporting and compliance obligations can be a complex, time-consuming and expensive task.
The range of obligations we can support include:
Introduced in April 2019, SECR impacts many more businesses than previous schemes. Businesses must comply if they meet two out of three of the following criteria: 250+ employees and/or an annual turnover greater than £36 million and/or an annual balance sheet total greater than £18 million.
Organisations with 250+ employees, or with an annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million, are required to conduct and submit energy audits to identify energy and carbon-saving opportunities every four years.
You will need an EPC if you rent out or sell premises, finish constructing a building, or make changes to the number of parts used for separate occupations that involve providing or extending fixed heating, air conditioning, or mechanical ventilation systems.
All public buildings with a total ‘useful’ floor area of 250+ m² are obliged to have a DEC, reporting energy usage and an A-G rating, plus an advisory report.
Building owners or managers are legally required to have regular inspections of air conditioning units with 12kW+ capacity. This needs to include a report, highlighting areas for operational improvements.
Securing an international standard in energy or environmental management can deliver commercial and reputational benefits for your customers, including cost savings, and will demonstrate their commitment to continual improvement. It may even exempt them from certain mandatory obligations.
Our team can help businesses qualify for the following best practice accreditations:
If your business utilises energy from a low-carbon source – such as on-site wind, solar, biomass or combined heat and power (CHP) plant – you could qualify for exemption from the Climate Change Levy (CCL). This tax is added to the energy invoices of any commercial business using 1,000 kWh+ per month of metered or un-metered electricity and 4,397 kWh+ per month of piped gas or above.
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The CCL is added to business energy invoices and collected by your supplier on behalf of HMRC. Businesses do not have to pay CCL costs, or may be able to claim relief, if they:
EII are defined by industry sector and intensity of consumption. Your customers may qualify for exemptions via government schemes designed to keep UK businesses competitive with their EU counterparts, whose energy costs are often lower. The exemptions could provide a reduction of up to 85% of the costs of Contracts for Difference (CfD), Renewables Obligation (RO) and Feed-in Tariff (FIT) levies.
To qualify for exemption, a business has to successfully apply for EII status. To do this, they must:
They will then be issued with a certificate to pass to their energy supplier, so that exemptions can be applied to their invoices.
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Understanding Contracts for Difference (CfD) is becoming increasingly important for businesses as...
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npower Business Solutions does not provide energy for homes. We do not hold any accounts, information or services for home energy. If you are a customer who was previously with npower for your energy at home, you have been moved to E.ON Next, who offer specialist services, designed to support you. Please visit the E.ON Next site for support, and all the information you need about home energy, from your existing account to new quotes.
npower Business Solutions does not provide energy for smaller businesses and we are unable to provide quotes. We do not hold any small business account information or services. If you are a small business who was previously with npower, you have been moved to E.ON Next, who offer specialist services, designed to support you. Please visit the E.ON Next site for support, and all the information you need about small business energy, from your existing account to new quotes.